NOT Easy to Do Business
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| # | Submitted | User | IP address | It was | Sector / Industry | State / UT | City | Response-time of officials | Number of documents to be submitted | Availability of information about the process | Overall Rating | It was an attempt to | Other | The problem was(asc) | Other cause | Details of experience | Advice for others | Share my story with | Name | Contact no | Privacy Policy | Contact me | Display it | |
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| 64 | 14 Dec 2016 - 17:01 | Anonymous (not verified) | 122.178.204.191 | Not Easy to Do Business | Non-Profit Organisation | Karnataka | Bangalore | 2/5 | 2/5 | 1/5 | 2/5 | Register the business | Corrupt officials who asked for bribes | When I went to register my organisation, I couldn't find any information like what are the documents required, whom to approach in the office, what are the fee details (if any), what are the services given in this office, etc. All I could see were "brokers/intermediaries" who approached the clients/people, whomsoever was coming to their office and advising, directing, and doing documentation work and getting money (including bribes to be paid to government officials starting from peon to registrar). He was having a rate card - who will take how much and for what work. The rate varies from service to service. The brokers are influential enough to speak directly to the so called top officer namely "Registrar" in that office. It is a common scene in all government offices such as Regional Transport Office, Tehsildar Office, Revenue Office, Collector Office and even in Court premises. It is very difficult for a common man to complete his/her work in government office without these intermediaries/ brokers or middleman. Brokers are acting as one window system to complete your work in government offices. |
a) Government should get rid of all brokers/intermediaries from government offices. They should not be allowed to run shops near these government offices. b) Government should not allow intermediaries to roam freely in government offices. Why is the government allowing access to these middlemen/ brokers in government offices and access to government seal, computer, etc? c) Government should display "citizen charter" with more details, which can be understood by a common man. d) Like social audits, we should create "social anti-corruption squad'', where common people can enter into any office and search officials for any possession of money apart from his own. I understand it is not practically feasible, still, we need to create some kind of responsibility amongst government employees. Or any other way accountability can be assured. e) Why doesn't the government not talk about performance of each and every employee of the office. Like in private sector, we should assess employees' performance with more transparent ways instead of present practice like 'performance report by higher official'. All the government officials are out to cheat the common people. So, the performance of the employees should be output based and outcome based. For, example, how many files are seen by a clerk on one day? or how many certificates are issued by VAO in a month?, etc. f) What the employee unions are doing I don't understand. In the old days, the employee unions were formed to strengthen the unity of the employees against their bosses. But today, these employee unions (government) are threatening the bosses. It is a good thing that they are joining hands for their rights. At the same time, they should think about how they are giving service to its people (for which they are getting paid). Are the unions taking actions against its employees, who are corrupt, not working properly, torturing the people unnecessarily, etc? If they think in such a manner, only then they have right to ask for a pay hike, employees rights, etc. g) I don't understand what the department vigilance commissions and anti-corruption bureau are doing. They only showcase the case when they catch the officers, after that, they are not showcasing the progress of the case to the public. How many people are really given punishments for their corrupt acts? |
Both | Senthil Nathan | 9566234440 | brahma.senthil@gmail.com | I have read and I agree with the Privacy Policy mentioned below | Keep me updated about responses to my report and experience. | Yes | ||
| 66 | 14 Dec 2016 - 17:40 | Anonymous (not verified) | 106.51.241.213 | Not Easy to Do Business | Media | Karnataka | Bangalore | 2/5 | 4/5 | 2/5 | 3/5 | Register the business | Corrupt officials who asked for bribes | Initially we tried to register our company ourselves. But the officials kept on delaying for reasons only known to them. Every time we went to the office to submit the documents asked to submit, we were asked for some different documents. Then we approached an agency and they were able to do the work easily. So we were not able to register by ourselves and had to approach a third party. |
For registering business, the process will be easier only when you approach some agencies or know some insider. Many agencies have come up with packages as the process is cumbersome. For example: http://www.legalwiz.in/private-limited-company?gclid=CJ2w8fjS89ACFc4SaAodUy4PAg is a website which is quite helpful in this regard. |
Keep it Anonymous | Anonymous | 9886918876 | ranjith@knappily.com | I have read and I agree with the Privacy Policy mentioned below | Keep me updated about responses to my report and experience. | Yes | ||
| 73 | 16 Dec 2016 - 09:04 | Prashant | 49.204.110.82 | Not Easy to Do Business | Restaurant | Uttar Pradesh | Lucknow | 3/5 | 3/5 | 2/5 | 3/5 | Register property | Corrupt officials who asked for bribes |
My whole issue was not while setting up the actual business, but while conducting it here. I run a restaurant, and officials often come and ask for bribes. What would you do if a food inspector comes to your restaurant and demands a bribe for the inspection? If you don't comply he will file a report which claims he found 10 cockroaches at your facility, and shut you down until an investigation is completed. You don't have a choice. If you don't pay a bribe, you can't do business in India. Government officers won't even let you register your company or get basic approvals to function! |
Corruption is rife and necessary. Be prepared to bribe someone or the other. | Keep it Anonymous | Anonymous | - | abcd@gmail.com | I have read and I agree with the Privacy Policy mentioned below | Yes | |||
| 74 | 16 Dec 2016 - 11:39 | Prashant | 49.204.110.82 | Not Easy to Do Business | IT | Maharashtra | Mumbai | 1/5 | 1/5 | 1/5 | 1/5 | Register the business | Corrupt officials who asked for bribes |
1) Bribe to complete registration of proprietorship. Didn't have to give bribe for registration of private limited company thankfully. 2) No clarity on taxes. For example, when you pay someone for a service, you have to cut 10% TDS. Now, if that person is Amazon and they are a MNC with offices in India and you pay them for their servers - do you deduct TDS? Amazon wants full payment. I talked to a dozen CAs and even a friend of mine in Indian Revenue Service, all of them had no clue. But they suggested me to pay the TDS just to be safe. So I had to pay Amazon the full amount and then 10% on top of that to Dear Govt of India. 100s of scenarios like this with no clarity. 3) Investment laws are a mess. Angel investments go straight into books of account as income and are taxed. God help you if you ever receive a FDI, I finally returned the money to the investor (it was 5 lakhs), as the amount of running around I had to do was not worth it for that small amount. 4) Terrible legal system- it's effectively a joke. An acquisition for one of my products fell through because the acquirer didn't want to make disputes subject to Indian jurisdiction in the contract because, in his own words, "the Indian legal system isn't held in very high regard here (Australia)" 5) High cost of doing businesses. My gateway charges a 5% premium (so 3%+5%) for Indian businesses, because of the increased costs of operation. So, while an American company can charge only 3%, I have to settle for 8%. So many other small little things - it's like death by a thousand cuts. |
It's a tough road, starting and conducting business in India. Be prepared for a lot of hardships. | Keep it Anonymous | Anonymous | - | abcd@gmail.com | I have read and I agree with the Privacy Policy mentioned below | Yes | |||
| 100 | 15 Jul 2021 - 06:36 | Anonymous (not verified) | 192.126.162.66 | Not Easy to Do Business | Ol rk Je Yj | Nagaland | Villejuif | 1/5 | 1/5 | 1/5 | 4/5 | Get electricity connection | Corrupt officials who asked for bribes |
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Both | Kazuko Rhem | Ltb Tuerte | rhem.kazuko@hotmail.com | I have read and I agree with the Privacy Policy mentioned below | Keep me updated about responses to my report and experience. | Yes | ||
| 7 | 11 Sep 2016 - 20:35 | Anonymous (not verified) | 106.222.18.102 | Not Easy to Do Business | Manufacturing/ Packaging | Uttar Pradesh | Greater Noida | 3/5 | 3/5 | 3/5 | 3/5 | Get electricity connection | Confusing laws that say different things |
There was denial for commercial electric connection on freehold plots. They agreed later, after repeated requests and talking strictly in a stern tone. I needed to get commercial connection to another freehold plot and I am not sure whether I will be able to get that without paying bribe or not. Auditors also tell you a lot of rules at the time of inspection, seek monetary benefits to turn a blind eye. There is no website or one place where we can get a list of all the rules to be followed. The process of registering a firm is also ironical. They ask three guarantors who have been doing business for last couple of years (I think 3 or more) and have been filing returns timely. In case you do not have three guarantors you can also get a fixed deposit opened of 25,000 in the name of the firm and use that as the guarantee. Now the irony here is that hardly any bank would accept to open a fixed deposit in the name of the firm which is not yet registered. Since we did not know enough businessmen in Greater Noida, we visited a number of banks who refused to accept money and open a FD in the firm's name. Luckily I met a bank manager who understood and agreed to help. This is how we got a FD and hence were able to get the firm registered almost when we were about to lose hope. Another experience is that when two different states get involved, different taxes also get involved. This is applicable for goods being brought into Delhi from another state on C.S.T. We need to share a copy of bill with the Delhi client who then sends a D-form and only then can the goods be brought into Delhi with the bill and the D-form from the client. This form contains same information present on the bill i.e. - date, goods, quantity, vehicle registration number and the billed amount. This process can be managed if you bill electronically and share the documents via email. Doing the same manually will involve additional delays. I think GST might be a big step in resolving this issue. |
You need to know influential people to get your work done or be prepared to argue trying to make the officials understand your rational. | Keep it Anonymous | Anonymous | 9868639096 | naveen.ydv125@yahoo.co.in | I have read and I agree with the Privacy Policy mentioned below | Keep me updated about responses to my report and experience. | Yes | ||
| 12 | 15 Oct 2016 - 15:03 | Anonymous (not verified) | 103.61.255.50 | Not Easy to Do Business | Direct Selling | Delhi | New Delhi | 2/5 | 3/5 | 3/5 | 3/5 | Register the business | Confusing laws that say different things | India doesn't have any specific law which governs Direct Selling Industry due to which people call Direct Sellers as Spammers or Fake | Do your research before starting a direct selling business | Keep it Anonymous | Anonymous | 9711099116 | dtickoo@gmail.com | I have read and I agree with the Privacy Policy mentioned below | Keep me updated about responses to my report and experience. | Yes | ||
| 20 | 16 Nov 2016 - 14:54 | Anonymous (not verified) | 203.122.16.122 | Not Easy to Do Business | Development Sector | Bihar | Muzaffarpur | 1/5 | 2/5 | 1/5 | 1/5 | Other | NGO Registration (Social Enterprise) | Confusing laws that say different things |
I am from Muzzafarpur, Bihar. I recently started a new enterprise in the Development Sector. I tried to register a NGO (Social Enterprise). I would say that the services provided in terms of registering the NGO are not at all time bound. It could take any amount of time to get your NGO registered. More over, my experience was that there is no sense of accountability when it comes to the government procedures related to starting up a business or an enterprise. |
My advice to other people who want to have their own start ups would be that, since it is very difficult to start a venture in Bihar or even invest in Bihar, you should get your organization registered in any other state but not Bihar. |
Both | Krishna Gopal Singh | 9538540985 | socialworksocietyindia@gmail.com | I have read and I agree with the Privacy Policy mentioned below | Keep me updated about responses to my report and experience. | Yes | |
| 26 | 16 Nov 2016 - 17:27 | Anonymous (not verified) | 203.122.16.122 | Not Easy to Do Business | E-Commerce | Maharashtra | Mumbai | 1/5 | 1/5 | 1/5 | 1/5 | Register the business | Confusing laws that say different things |
I tried to set up an e-commerce firm myself in Mumbai. The whole process was just a big headache. You don't understand who is going to look after your concern as people are mostly busy with their own personal schedule and they don't even listen to you or have the time for your concerns or doubts. If you have to get your work done, you have to wait for them to get free and eventually bend a little and be extra buttery to ask them to do your job. When they start doing your work, they would ask you questions in Marathi and that's the most irritating part if you have to register your start up in Maharashtra. Come on, you have to be kidding me, asking me to do something in Marathi! I got the form in English, and Marathi is never simple to comprehend. They use terms in the form and expect us to know the terms. Had we known those terms, we would have not asked for their help. |
Get someone to get your work done. Take a Charted Accountant’s or a lawyer’s help. You would forget about who you are when you step into the mess they are into. The lawyer or the Charted Accountant would handle everything for you. |
Keep it Anonymous | Anonymous | 9820933429 | ramesh.joshi65@gmail.com | I have read and I agree with the Privacy Policy mentioned below | Yes | |||
| 45 | 24 Nov 2016 - 15:35 | Prashant | 203.122.16.122 | Not Easy to Do Business | IT | Telangana | Hyderabad | 2/5 | 1/5 | 1/5 | 1/5 | Register the business | Confusing laws that say different things |
Bureaucrats are more often insensitive than not, and do not have the mentality of helping citizens. Rather, they have the mentality of making things as difficult as possible - they think their job is to make things more difficult for citizens. A lot of markets are controlled by guilds and associations of existing businessmen. They place a high cost of entry for new entrants, especially someone without connections in the business community. I experienced extortionate behavior by local working class people, goons, thugs and small time politicians/crooks. Bribes on the preface of "donations" for 100 different religious festivals a year are taken. There is a total lack of rule of the law and lawlessness. It is a utter failure on the part of the police and judiciary since they do not have the capacity to dispose cases in a timely manner. One needs to be careful and look out for extortionate,fraudulent and deceiving behavior by lawyers and some Charted Accountants. |
Hire a good and trustworthy lawyer/CA who has experience in dealing with bureaucrats. They are also well-versed with the processes and procedures of the laws related to a start-up. | Keep it Anonymous | Anonymous | 77898764578 | advaygoyal52@gmail.com | I have read and I agree with the Privacy Policy mentioned below | Yes |